Suppose There Is a Temporary Supply Shock Because of a War

question 40

Multiple Choice

Suppose there is a temporary supply shock because of a war in the Middle East,then ________.

• A)this would constitute a cost push shock due to a restriction in the supply of oil
• B)the AS curve would shift to the left
• C)this could theoretically lead to stagflation
• D)all of the above
• E)none of the above

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Definitions:

Discrimination

Unfair or prejudicial treatment of people based on characteristics such as race, age, sex, or disability instead of individual merit.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization in the United States formed in 1909 to fight prejudice, lynching, and Jim Crow segregation.

Gunnar Myrdal

A Swedish economist and sociologist known for his pioneering work on economic theory and racial relations in America.

American Dilemma

A term often used to describe the conflict and contradiction between the ideals of democracy and freedom, and the reality of segregation and racial discrimination in the United States.